falsedesktopTHO2020-10-31000073026320000023{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "THOR INDUSTRIES INC.\t\t\t\n(Exact name of registrant as specified in its charter)\t\t\t\nDelaware\t\t\t93-0768752\n(State or other jurisdiction of\t\t\t(I.R.S. Employer\nincorporation or organization)\t\t\tIdentification No.)\n601 E. Beardsley Ave. Elkhart IN\t\t\t46514-3305\n(Address of principal executive offices)\t\t\t(Zip Code)\n\t\t(574) 970-7460\t\n\t(Registrant's telephone number including area code)\t\t\n\tNone\t\t\n(Former name former address and former fiscal year if changed since last report)\t\t\t\n", "q10k_tbl_1": "\tOctober 31 2020\tJuly 31 2020\nASSETS\t\t\nCurrent assets:\t\t\nCash and cash equivalents\t337402\t538519\nRestricted cash\t2808\t2844\nAccounts receivable trade net\t653805\t588069\nFactored accounts receivable\t111063\t143278\nAccounts receivable other net\t52785\t82880\nInventories net\t1038250\t716305\nPrepaid income taxes expenses and other\t44203\t30382\nTotal current assets\t2240316\t2102277\nProperty plant and equipment net\t1091941\t1107649\nOther assets:\t\t\nGoodwill\t1481283\t1476541\nAmortizable intangible assets net\t885454\t914724\nDeferred income tax assets net\t70496\t78738\nOther\t91432\t91531\nTotal other assets\t2528665\t2561534\nTOTAL ASSETS\t5860922\t5771460\nLIABILITIES AND STOCKHOLDERS' EQUITY\t\t\nCurrent liabilities:\t\t\nAccounts payable\t753106\t636506\nCurrent portion of long-term debt\t12519\t13817\nShort-term financial obligations\t35257\t35939\nAccrued liabilities:\t\t\nCompensation and related items\t194687\t160083\nProduct warranties\t245554\t252869\nIncome and other taxes\t59934\t83893\nPromotions and rebates\t71344\t97378\nProduct property and related liabilities\t14142\t15440\nDividends payable\t22700\t0\nLiabilities related to factored receivables\t111063\t143278\nOther\t76384\t76078\nTotal current liabilities\t1596690\t1515281\nLong-term debt\t1585019\t1652831\nDeferred income tax liabilities net\t122137\t123802\nUnrecognized tax benefits\t13441\t12765\nOther liabilities\t123114\t121212\nTotal long-term liabilities\t1843711\t1910610\nContingent liabilities and commitments\t0\t0\nStockholders' equity:\t\t\nPreferred stock - authorized 1000000 shares; none outstanding\t0\t0\nCommon stock - par value of $.10 per share; authorized 250000000 shares; issued 65651570 and 65396531 shares respectively\t6565\t6540\nAdditional paid-in capital\t442794\t436828\nRetained earnings\t2292387\t2201330\nAccumulated other comprehensive income net of tax\t11219\t26993\nLess treasury shares of 10285329 and 10197775 respectively at cost\t(360226)\t(351909)\nStockholders' equity attributable to THOR Industries Inc.\t2392739\t2319782\nNon-controlling interests\t27782\t25787\nTotal stockholders' equity\t2420521\t2345569\nTOTAL LIABILITIES AND STOCKHOLDERS' EQUITY\t5860922\t5771460\n", "q10k_tbl_2": "\tThree Months Ended October 31\t\n\t\t2020\t\t\t\t2019\t\t\nNet sales\t\t2537360\t\t\t\t2158785\t\t\nCost of products sold\t\t2158508\t\t\t\t1849974\t\t\nGross profit\t\t378852\t\t\t\t308811\t\t\nSelling general and administrative expenses\t\t181763\t\t\t\t188464\t\t\nAmortization of intangible assets\t\t27427\t\t\t\t24293\t\t\nInterest income\t\t318\t\t\t\t975\t\t\nInterest expense\t\t24276\t\t\t\t28025\t\t\nOther income (expense) net\t\t615\t\t\t\t(370)\t\t\nIncome before income taxes\t\t146319\t\t\t\t68634\t\t\nIncome tax provision\t\t30680\t\t\t\t16789\t\t\nNet income\t\t115639\t\t\t\t51845\t\t\nLess: Net income attributable to non-controlling interests\t\t1882\t\t\t\t780\t\t\nNet income attributable to THOR Industries Inc.\t\t113757\t\t\t\t51065\t\t\nWeighted-average common shares outstanding:\t\t\t\t\t\t\t\t\nBasic\t\t55238164\t\t\t\t55095074\t\t\nDiluted\t\t55554682\t\t\t\t55224655\t\t\nEarnings per common share:\t\t\t\t\t\t\t\t\nBasic\t\t2.06\t\t\t\t0.93\t\t\nDiluted\t\t2.05\t\t\t\t0.92\t\t\nComprehensive income:\t\t\t\t\t\t\t\t\nNet income\t\t115639\t\t\t\t51845\t\t\nOther comprehensive income (loss) net of tax\t\t\t\t\t\t\t\t\nForeign currency translation adjustment\t\t(18993)\t\t\t\t993\t\t\nUnrealized gain (loss) on derivatives net of tax\t\t3332\t\t\t\t(3722)\t\t\nTotal other comprehensive loss net of tax\t\t(15661)\t\t\t\t(2729)\t\t\nTotal Comprehensive income\t\t99978\t\t\t\t49116\t\t\nLess: Comprehensive income attributable to non-controlling interests\t\t1995\t\t\t\t638\t\t\nComprehensive income attributable to THOR Industries Inc.\t\t97983\t\t\t\t48478\t\t\n", "q10k_tbl_3": "\tThree Months Ended October 31\t\n\t2020\t2019\nCash flows from operating activities:\t\t\nNet income\t115639\t51845\nAdjustments to reconcile net income to net cash used in operating activities:\t\t\nDepreciation\t26812\t25914\nAmortization of intangible assets\t27427\t24293\nAmortization of debt issuance costs\t2723\t2685\nDeferred income tax provision\t4601\t2318\n(Gain) loss on disposition of property plant and equipment\t(79)\t619\nStock-based compensation expense\t5768\t5013\nChanges in assets and liabilities:\t\t\nAccounts receivable\t(36495)\t(65307)\nInventories net\t(322047)\t(82152)\nPrepaid income taxes expenses and other\t(14857)\t6649\nAccounts payable\t127585\t19639\nAccrued liabilities\t(20601)\t(46593)\nLong-term liabilities and other\t2234\t3080\nNet cash used in operating activities\t(81290)\t(51997)\nCash flows from investing activities:\t\t\nPurchases of property plant and equipment\t(24708)\t(31220)\nProceeds from dispositions of property plant and equipment\t975\t18951\nBusiness acquisitions net of cash acquired\t(22700)\t0\nOther\t0\t(1534)\nNet cash used in investing activities\t(46433)\t(13803)\nCash flows from financing activities:\t\t\nBorrowings on revolving asset-based credit facilities\t0\t41569\nPayments on term-loan credit facilities\t(59700)\t(140181)\nPayments on revolving asset-based credit facilities\t0\t(5577)\nPayments on other debt\t(3096)\t(3001)\nPayments on finance lease obligations\t(119)\t(107)\nShort-term financial obligations and other net\t(5580)\t(7477)\nNet cash used in financing activities\t(68495)\t(114774)\nEffect of exchange rate changes on cash and cash equivalents and restricted cash\t(4935)\t(206)\nNet decrease in cash and cash equivalents and restricted cash\t(201153)\t(180780)\nCash and cash equivalents and restricted cash beginning of period\t541363\t451262\nCash and cash equivalents and restricted cash end of period\t340210\t270482\nLess: restricted cash\t2808\t38704\nCash and cash equivalents end of period\t337402\t231778\nSupplemental cash flow information:\t\t\nIncome taxes paid\t48788\t24512\nInterest paid\t18207\t25592\nNon-cash investing and financing transactions:\t\t\nCapital expenditures in accounts payable\t1602\t3137\nQuarterly dividends payable\t22700\t22080\n", "q10k_tbl_4": "THOR INDUSTRIES INC. AND SUBSIDIARIES\t\t\t\t\t\t\t\t\t\t\nCONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY\t\t\t\t\t\t\t\t\t\t\nFOR THE THREE MONTHS ENDED OCTOBER 31 2020 AND 2019 (UNAUDITED)\t\t\t\t\t\t\t\t\t\t\n\tThree Months Ended October 31 2020\t\t\t\t\t\t\t\t\t\n\t\t\t\t\tAccumulated\t\t\tStockholders'\t\t\n\t\t\tAdditional\t\tOther\t\t\tEquity\tNon-\tTotal\n\tCommon Stock\t\tPaid-In\tRetained\tComprehensive\tTreasury Stock\t\tAttributable\tcontrolling\tStockholders'\n\tShares\tAmount\tCapital\tEarnings\tIncome (Loss)\tShares\tAmount\tto THOR\tInterests\tEquity\nBalance at August 1 2020\t65396531\t6540\t436828\t2201330\t26993\t10197775\t(351909)\t2319782\t25787\t2345569\nNet income\t0\t0\t0\t113757\t0\t0\t0\t113757\t1882\t115639\nRestricted stock unit activity\t255039\t25\t198\t0\t0\t87554\t(8317)\t(8094)\t0\t(8094)\nDividends $0.41 per common share\t0\t0\t0\t(22700)\t0\t0\t0\t(22700)\t0\t(22700)\nStock-based compensation expense\t0\t0\t5768\t0\t0\t0\t0\t5768\t0\t5768\nOther comprehensive income (loss)\t0\t0\t0\t0\t(15774)\t0\t0\t(15774)\t113\t(15661)\nBalance at October 31 2020\t65651570\t6565\t442794\t2292387\t11219\t10285329\t(360226)\t2392739\t27782\t2420521\n", "q10k_tbl_5": "\tThree Months Ended October 31 2019\t\t\t\t\t\t\t\t\t\n\t\t\t\t\tAccumulated\t\t\tStockholders'\t\t\n\t\t\tAdditional\t\tOther\t\t\tEquity\tNon-\tTotal\n\tCommon Stock\t\tPaid-In\tRetained\tComprehensive\tTreasury Stock\t\tAttributable\tcontrolling\tStockholders'\n\tShares\tAmount\tCapital\tEarnings\t(Loss)\tShares\tAmount\tto THOR\tInterests\tEquity\nBalance at August 1 2019\t65189907\t6519\t416382\t2066674\t(57004)\t10126434\t(348146)\t2084425\t10803\t2095228\nNet income\t0\t0\t0\t51065\t0\t0\t0\t51065\t780\t51845\nRestricted stock unit activity\t206624\t21\t1436\t0\t0\t71341\t(3763)\t(2306)\t0\t(2306)\nDividends $0.40 per common share\t0\t0\t0\t(22080)\t0\t0\t0\t(22080)\t0\t(22080)\nStock-based compensation expense\t0\t0\t5013\t0\t0\t0\t0\t5013\t0\t5013\nOther comprehensive loss\t0\t0\t0\t0\t(2587)\t0\t0\t(2587)\t(142)\t(2729)\nBalance at October 31 2019\t65396531\t6540\t422831\t2095659\t(59591)\t10197775\t(351909)\t2113530\t11441\t2124971\n", "q10k_tbl_6": "Cash\t326\nAccounts receivable\t466\nOther assets\t749\nProperty plant and equipment\t362\nAmortizable intangible assets\t\nTrade names and trademarks\t1130\nDeveloped technology\t5700\nOther\t1350\nGoodwill\t61955\nLiabilities\t(2595)\nNon-controlling interest\t(16835)\nTotal fair value of net assets acquired\t52608\n", "q10k_tbl_7": "\tThree Months Ended October 31\t\nNET SALES:\t\t2020\t\t\t\t2019\t\t\nRecreational vehicles\t\t\t\t\t\t\t\t\nNorth American Towables\t\t1392044\t\t\t\t1200888\t\t\nNorth American Motorized\t\t493855\t\t\t\t415889\t\t\nTotal North America\t\t1885899\t\t\t\t1616777\t\t\nEuropean\t\t602488\t\t\t\t493007\t\t\nTotal recreational vehicles\t\t2488387\t\t\t\t2109784\t\t\nOther\t\t80707\t\t\t\t73566\t\t\nIntercompany eliminations\t\t(31734)\t\t\t\t(24565)\t\t\nTotal\t\t2537360\t\t\t\t2158785\t\t\n", "q10k_tbl_8": "\tThree Months Ended October 31\t\nINCOME (LOSS) BEFORE INCOME TAXES:\t\t2020\t\t\t\t2019\t\t\nRecreational vehicles\t\t\t\t\t\t\t\t\nNorth American Towables\t\t141179\t\t\t\t104322\t\t\nNorth American Motorized\t\t41567\t\t\t\t21775\t\t\nTotal North America\t\t182746\t\t\t\t126097\t\t\nEuropean\t\t(5506)\t\t\t\t(23024)\t\t\nTotal recreational vehicles\t\t177240\t\t\t\t103073\t\t\nOther net\t\t11490\t\t\t\t11751\t\t\nCorporate\t\t(42411)\t\t\t\t(46190)\t\t\nTotal\t\t146319\t\t\t\t68634\t\t\n", "q10k_tbl_9": "TOTAL ASSETS:\tOctober 31 2020\tJuly 31 2020\nRecreational vehicles\t\t\nNorth American Towables\t1698128\t1529913\nNorth American Motorized\t644142\t480225\nTotal North America\t2342270\t2010138\nEuropean\t2972710\t3102071\nTotal recreational vehicles\t5314980\t5112209\nOther net\t236081\t212378\nCorporate\t309861\t446873\nTotal\t5860922\t5771460\n", "q10k_tbl_10": "\tThree Months Ended October 31\t\nDEPRECIATION AND INTANGIBLE AMORTIZATION EXPENSE:\t\t2020\t\t\t\t2019\t\t\nRecreational vehicles\t\t\t\t\t\t\t\t\nNorth American Towables\t\t15807\t\t\t\t16271\t\t\nNorth American Motorized\t\t3770\t\t\t\t3494\t\t\nTotal North America\t\t19577\t\t\t\t19765\t\t\nEuropean\t\t31323\t\t\t\t27483\t\t\nTotal recreational vehicles\t\t50900\t\t\t\t47248\t\t\nOther\t\t2911\t\t\t\t2511\t\t\nCorporate\t\t428\t\t\t\t448\t\t\nTotal\t\t54239\t\t\t\t50207\t\t\n", "q10k_tbl_11": "CAPITAL ACQUISITIONS:\t\t\nRecreational vehicles\t\t\nNorth American Towables\t9408\t11275\nNorth American Motorized\t1745\t2568\nTotal North America\t11153\t13843\nEuropean\t9894\t15027\nTotal recreational vehicles\t21047\t28870\nOther\t1444\t655\nCorporate\t361\t498\nTotal\t22852\t30023\n", "q10k_tbl_12": "\tThree Months Ended October 31\t\n\t\t2020\t\t\t\t2019\t\t\nWeighted-average common shares outstanding for basic earnings per share\t\t55238164\t\t\t\t55095074\t\t\nUnvested restricted stock units\t\t316518\t\t\t\t129581\t\t\nWeighted-average common shares outstanding assuming dilution\t\t55554682\t\t\t\t55224655\t\t\n", "q10k_tbl_13": "\tOctober 31 2020\t\tJuly 31 2020\t\n\t\tFair Value in\t\t\t\t\t\tFair Value in\t\t\n\t\tOther Current\t\t\t\t\t\tOther Current\t\t\nCash Flow Hedges\tNotional\tLiabilities\t\tNotional\t\t\t\tLiabilities\t\t\nInterest rate swap agreements\t631800\t20469\t\t673400\t\t\t\t24840\t\t\n", "q10k_tbl_14": "\tThree Months Ended October 31\t\n\t2020\t2019\nGain (Loss) on Derivatives Designated as Cash Flow Hedges\t\t\nGain (Loss) recognized in Other Comprehensive Income net of tax\t\t\nForeign currency forward contracts\t0\t(525)\nInterest rate swap agreements\t3332\t(3197)\nTotal gain (loss)\t3332\t(3722)\n", "q10k_tbl_15": "\tThree Months Ended October 31\t\t\t\n\t2020\t\t2019\t\n\t\tInterest\t\t\t\t\t\tInterest\t\t\n\tSales\tExpense\t\tSales\t\t\t\tExpense\t\t\n(Loss) Reclassified from AOCI Net of Tax\t\t\t\t\t\t\t\t\t\t\nForeign currency forward contracts\t0\t0\t\t0\t\t\t\t0\t\t\nInterest rate swap agreements\t0\t(2774)\t\t0\t\t\t\t(495)\t\t\n(Loss) on Derivatives Not Designated as Hedging Instruments\t\t\t\t\t\t\t\t\t\t\nAmount of loss recognized in income net of tax\t\t\t\t\t\t\t\t\t\t\nInterest rate swap agreements\t0\t(38)\t\t0\t\t\t\t(75)\t\t\nTotal (loss)\t0\t(2812)\t\t0\t\t\t\t(570)\t\t\n", "q10k_tbl_16": "\tOctober 31 2020\tJuly 31 2020\nFinished goods - RV\t108327\t152297\nFinished goods - other\t46819\t44779\nWork in process\t209155\t128181\nRaw materials\t387516\t302813\nChassis\t334392\t135194\nSubtotal\t1086209\t763264\nExcess of FIFO costs over LIFO costs\t(47959)\t(46959)\nTotal inventories net\t1038250\t716305\n", "q10k_tbl_17": "\tOctober 31 2020\tJuly 31 2020\nLand\t135604\t136200\nBuildings and improvements\t767246\t760986\nMachinery and equipment\t448204\t438985\nRental vehicles\t75546\t83534\nLease right-of-use assets - operating\t34078\t33609\nLease right-of-use assets - finance\t3536\t3672\nTotal cost\t1464214\t1456986\nLess accumulated depreciation\t(372273)\t(349337)\nProperty plant and equipment net\t1091941\t1107649\n", "q10k_tbl_18": "\tOctober 31 2020\t\tJuly 31 2020\t\n\t\tAccumulated\t\tAccumulated\n\tCost\tAmortization\tCost\tAmortization\nDealer networks/customer relationships\t763378\t270510\t766198\t252320\nTrademarks\t276985\t51066\t275775\t47743\nDesign technology and other intangibles\t212218\t45551\t213468\t40654\nTotal amortizable intangible assets\t1252581\t367127\t1255441\t340717\n", "q10k_tbl_19": "For the remainder of the fiscal year ending July 31 2021\t81636\nFor the fiscal year ending July 31 2022\t112771\nFor the fiscal year ending July 31 2023\t92322\nFor the fiscal year ending July 31 2024\t83315\nFor the fiscal year ending July 31 2025\t76397\nFor the fiscal year ending July 31 2026 and thereafter\t439013\n\t885454\n", "q10k_tbl_20": "\tNorth American Towables\tNorth American Motorized\tEuropean\tOther\tTotal\nNet balance as of August 1 2020\t333786\t0\t1037929\t104826\t1476541\nFiscal 2021 activity:\t\t\t\t\t\nGoodwill acquired\t0\t0\t0\t17882\t17882\nForeign currency translation\t0\t0\t(13140)\t0\t(13140)\nNet balance as of October 31 2020\t333786\t0\t1024789\t122708\t1481283\n", "q10k_tbl_21": "\tNorth American Towables\tNorth American Motorized\tEuropean\tOther\tTotal\nNet balance as of August 1 2019\t334822\t0\t980339\t42871\t1358032\nFiscal 2020 activity:\t\t\t\t\t\nMeasurement period adjustments\t0\t0\t3054\t0\t3054\nForeign currency translation\t0\t0\t179\t0\t179\nNet balance as of October 31 2019\t334822\t0\t983572\t42871\t1361265\n", "q10k_tbl_22": "\tInput Level\tOctober 31 2020\tJuly 31 2020\nCash equivalents\tLevel 1\t90377\t227154\nDeferred compensation plan mutual fund assets\tLevel 1\t48993\t47327\nDeferred compensation plan liabilities\tLevel 1\t63094\t61290\nInterest rate swap liability\tLevel 2\t22323\t26664\n", "q10k_tbl_23": "\tThree Months Ended October 31\t\n\t\t2020\t\t\t\t2019\t\t\nBeginning balance\t\t252869\t\t\t\t289679\t\t\nProvision\t\t50872\t\t\t\t60209\t\t\nPayments\t\t(57575)\t\t\t\t(64593)\t\t\nForeign currency translation\t\t(612)\t\t\t\t305\t\t\nEnding balance\t\t245554\t\t\t\t285600\t\t\n", "q10k_tbl_24": "\tOctober 31 2020\tJuly 31 2020\nTerm loan\t1530305\t1597091\nUnsecured notes\t29245\t29620\nOther debt\t80361\t84500\nGross long-term debt\t1639911\t1711211\nDebt issuance costs net of amortization\t(42373)\t(44563)\nTotal long-term debt net of debt issuance costs\t1597538\t1666648\nLess: current portion of long-term debt\t(12519)\t(13817)\nTotal long-term debt net less current portion\t1585019\t1652831\n", "q10k_tbl_25": "For the remainder of the fiscal year ending July 31 2021\t10266\nFor the fiscal year ending July 31 2022\t11875\nFor the fiscal year ending July 31 2023\t11996\nFor the fiscal year ending July 31 2024\t12121\nFor the fiscal year ending July 31 2025\t35395\nFor the fiscal year ending July 31 2026 and thereafter\t1558258\n\t1639911\n", "q10k_tbl_26": "\tThree Months Ended October 31\t\n\t\t2020\t\t\t\t2019\t\t\nOperating lease cost\t\t3877\t\t\t\t3031\t\t\nFinance lease cost\t\t\t\t\t\t\t\t\nAmortization of right-of-use assets\t\t136\t\t\t\t136\t\t\nInterest on lease liabilities\t\t126\t\t\t\t137\t\t\nTotal lease cost\t\t4139\t\t\t\t3304\t\t\n", "q10k_tbl_27": "\tThree Months Ended October 31\t\nSupplemental Cash Flows Information\t2020\t2019\nCash paid for amounts included in the measurement of lease liabilities:\t\t\nOperating cash flows from operating leases\t3855\t3005\nRight-of-use assets obtained in exchange for lease obligations:\t\t\nOperating leases\t2348\t278\n", "q10k_tbl_28": "Supplemental Balance Sheet Information\tOctober 31 2020\tJuly 31 2020\nOperating leases:\t\t\nOperating lease right-of-use assets\t34078\t33609\nOperating lease liabilities\t\t\nOther current liabilities\t5794\t5343\nOther long-term liabilities\t28496\t28456\nTotal operating lease liabilities\t34290\t33799\nFinance leases:\t\t\nFinance lease right-of-use assets\t3536\t3672\nFinance lease liabilities\t\t\nOther current liabilities\t523\t505\nOther long-term liabilities\t4606\t4743\nTotal finance lease liabilities\t5129\t5248\n", "q10k_tbl_29": "\tOctober 31 2020\tJuly 31 2020\nWeighted-average remaining lease term\t\t\nOperating leases\t13.1 years\t13.6 years\nFinance leases\t6.6 years\t6.8 years\nWeighted-average discount rate\t\t\nOperating leases\t3.4%\t3.4%\nFinance leases\t9.7%\t9.7%\n", "q10k_tbl_30": "\tOperating Leases\tFinancing Leases\nFor the remainder of the fiscal year ending July 31 2021\t8245\t745\nFor the fiscal year ending July 31 2022\t8981\t1013\nFor the fiscal year ending July 31 2023\t6591\t1036\nFor the fiscal year ending July 31 2024\t4668\t1059\nFor the fiscal year ending July 31 2025\t3441\t1083\nFor the fiscal year ending July 31 2026 and thereafter\t18615\t2061\nTotal future lease payments\t50541\t6997\nLess: amount representing interest\t(16251)\t(1868)\nTotal reported lease liability\t34290\t5129\n", "q10k_tbl_31": "\tThree Months Ended October 31\t\nNET SALES:\t\t2020\t\t\t\t2019\t\t\nRecreational vehicles\t\t\t\t\t\t\t\t\nNorth American Towables\t\t\t\t\t\t\t\t\nTravel Trailers and Other\t\t837900\t\t\t\t709665\t\t\nFifth Wheels\t\t554144\t\t\t\t491223\t\t\nTotal North American Towables\t\t1392044\t\t\t\t1200888\t\t\nNorth American Motorized\t\t\t\t\t\t\t\t\nClass A\t\t158555\t\t\t\t161732\t\t\nClass C\t\t275399\t\t\t\t229837\t\t\nClass B\t\t59901\t\t\t\t24320\t\t\nTotal North American Motorized\t\t493855\t\t\t\t415889\t\t\nTotal North America\t\t1885899\t\t\t\t1616777\t\t\nEuropean\t\t\t\t\t\t\t\t\nMotorcaravan\t\t318343\t\t\t\t281733\t\t\nCampervan\t\t143400\t\t\t\t77597\t\t\nCaravan\t\t55195\t\t\t\t61032\t\t\nOther RV-related\t\t85550\t\t\t\t72645\t\t\nTotal European\t\t602488\t\t\t\t493007\t\t\nTotal recreational vehicles\t\t2488387\t\t\t\t2109784\t\t\nOther primarily aluminum extruded components\t\t80707\t\t\t\t73566\t\t\nIntercompany eliminations\t\t(31734)\t\t\t\t(24565)\t\t\nTotal\t\t2537360\t\t\t\t2158785\t\t\n", "q10k_tbl_32": "\tThree Months Ended October 31\t\t\t\t\t\t\t\n\t2020\t\t\t\t2019\t\t\t\n\tForeign Currency\tUnrealized\t\t\tForeign Currency\tUnrealized\t\t\n\tTranslation\tGain (Loss) on\t\t\tTranslation\tGain (Loss) on\t\t\n\tAdjustment\tDerivative\tOther\tTotal\tAdjustment\tDerivative\tOther\tTotal\nBalance at beginning of period\t45657\t(18823)\t(696)\t26138\t(47078)\t(9472)\t(1048)\t(57598)\nOCI before reclassifications\t(18993)\t732\t0\t(18261)\t993\t(5554)\t0\t(4561)\nIncome taxes associated with OCI before reclassifications\t0\t(174)\t0\t(174)\t0\t1337\t0\t1337\nAmounts reclassified from AOCI\t0\t3639\t0\t3639\t0\t647\t0\t647\nIncome taxes associated with amounts reclassified from AOCI\t0\t(865)\t0\t(865)\t0\t(152)\t0\t(152)\nAOCI net of tax\t26664\t(15491)\t(696)\t10477\t(46085)\t(13194)\t(1048)\t(60327)\nLess: AOCI attributable to noncontrolling interest\t(742)\t0\t0\t(742)\t(736)\t0\t0\t(736)\nAOCI net of tax attributable to THOR Industries Inc.\t27406\t(15491)\t(696)\t11219\t(45349)\t(13194)\t(1048)\t(59591)\n", "q10k_tbl_33": "\tU.S. and Canada Wholesale Unit Shipments\t\t\t\n\tNine Months Ended September 30\t\tIncrease\t%\n\t2020\t2019\t(Decrease)\tChange\nNorth American Towable Units\t271770\t273629\t(1859)\t(0.7)\nNorth American Motorized Units\t28330\t36309\t(7979)\t(22.0)\nTotal\t300100\t309938\t(9838)\t(3.2)\n", "q10k_tbl_34": "\tU.S. and Canada Retail Unit Registrations\t\t\t\n\tNine Months Ended September 30\t\tIncrease\t%\n\t2020\t2019\t(Decrease)\tChange\nNorth American Towable Units\t369066\t343723\t25343\t7.4\nNorth American Motorized Units\t40595\t42144\t(1549)\t(3.7)\nTotal\t409661\t385867\t23794\t6.2\n", "q10k_tbl_35": "\tU.S. and Canada Wholesale Unit Shipments\t\t\t\n\tNine Months Ended September 30\t\tIncrease\t%\n\t2020\t2019\t(Decrease)\tChange\nNorth American Towable Units\t116323\t123889\t(7566)\t(6.1)\nNorth American Motorized Units\t11426\t13907\t(2481)\t(17.8)\nTotal\t127749\t137796\t(10047)\t(7.3)\n", "q10k_tbl_36": "\tU.S. and Canada Retail Unit Registrations\t\t\t\n\tNine Months Ended September 30\t\tIncrease\t%\n\t2020\t2019\t(Decrease)\tChange\nNorth American Towable Units\t155545\t156730\t(1185)\t(0.8)\nNorth American Motorized Units\t15627\t15772\t(145)\t(0.9)\nTotal\t171172\t172502\t(1330)\t(0.8)\n", "q10k_tbl_37": "\tEuropean Unit Registrations\t\t\t\t\t\n\tMotorcaravan and Campervan (2)\t\t\tCaravan\t\t\n\tNine Months Ended September 30\t\t%\tNine Months Ended September 30\t\t%\n\t2020\t2019\tChange\t2020\t2019\tChange\nOEM Reporting Countries (1)\t118938\t100384\t18.5\t49963\t50195\t(0.5)\nNon-OEM Reporting Countries (1)\t12059\t15500\t(22.2)\t12870\t15923\t(19.2)\nTotal\t130997\t115884\t13.0\t62833\t66118\t(5.0)\n", "q10k_tbl_38": "\tEuropean Unit Registrations (1)\t\t\t\n\tNine Months Ended September 30\t\tIncrease\t%\n\t2020\t2019\t(Decrease)\tChange\nMotorcaravan and Campervan\t31145\t25811\t5334\t20.7\nCaravan\t10271\t10567\t(296)\t(2.8)\nTotal OEM-Reporting Countries\t41416\t36378\t5038\t13.8\n", "q10k_tbl_39": "NET SALES:\tThree Months Ended October 31 2020\tThree Months Ended October 31 2019\tChange Amount\t% Change\nRecreational vehicles\t\t\t\t\nNorth American Towables\t1392044\t1200888\t191156\t15.9\nNorth American Motorized\t493855\t415889\t77966\t18.7\nTotal North America\t1885899\t1616777\t269122\t16.6\nEuropean\t602488\t493007\t109481\t22.2\nTotal recreational vehicles\t2488387\t2109784\t378603\t17.9\nOther\t80707\t73566\t7141\t9.7\nIntercompany eliminations\t(31734)\t(24565)\t(7169)\t(29.2)\nTotal\t2537360\t2158785\t378575\t17.5\n", "q10k_tbl_40": "# OF UNITS:\t\t\t\t\nRecreational vehicles\t\t\t\t\nNorth American Towables\t50341\t42865\t7476\t17.4\nNorth American Motorized\t5167\t4490\t677\t15.1\nTotal North America\t55508\t47355\t8153\t17.2\nEuropean\t12226\t11287\t939\t8.3\nTotal\t67734\t58642\t9092\t15.5\n", "q10k_tbl_41": "GROSS PROFIT:\t\t% of Segment Net Sales\t\t% of Segment Net Sales\tChange Amount\t% Change\nRecreational vehicles\t\t\t\t\t\t\nNorth American Towables\t219848\t15.8\t184193\t15.3\t35655\t19.4\nNorth American Motorized\t68102\t13.8\t44747\t10.8\t23355\t52.2\nTotal North America\t287950\t15.3\t228940\t14.2\t59010\t25.8\nEuropean\t72381\t12.0\t64611\t13.1\t7770\t12.0\nTotal recreational vehicles\t360331\t14.5\t293551\t13.9\t66780\t22.7\nOther net\t18521\t22.9\t15260\t20.7\t3261\t21.4\nTotal\t378852\t14.9\t308811\t14.3\t70041\t22.7\n", "q10k_tbl_42": "SELLING GENERAL AND ADMINISTRATIVE EXPENSES:\t\t\t\t\t\t\nRecreational vehicles\t\t\t\t\t\t\nNorth American Towables\t70338\t5.1\t71305\t5.9\t(967)\t(1.4)\nNorth American Motorized\t25152\t5.1\t21631\t5.2\t3521\t16.3\nTotal North America\t95490\t5.1\t92936\t5.7\t2554\t2.7\nEuropean\t60421\t10.0\t73786\t15.0\t(13365)\t(18.1)\nTotal recreational vehicles\t155911\t6.3\t166722\t7.9\t(10811)\t(6.5)\nOther\t5436\t6.7\t2375\t3.2\t3061\t128.9\nCorporate\t20416\t0\t19367\t0\t1049\t5.4\nTotal\t181763\t7.2\t188464\t8.7\t(6701)\t(3.6)\n", "q10k_tbl_43": "INCOME (LOSS) BEFORE INCOME TAXES:\tThree Months Ended October 31 2020\t% of Segment Net Sales\tThree Months Ended October 31 2019\t% of Segment Net Sales\tChange Amount\t% Change\nRecreational vehicles\t\t\t\t\t\t\nNorth American Towables\t141179\t10.1\t104322\t8.7\t36857\t35.3\nNorth American Motorized\t41567\t8.4\t21775\t5.2\t19792\t90.9\nTotal North America\t182746\t9.7\t126097\t7.8\t56649\t44.9\nEuropean\t(5506)\t(0.9)\t(23024)\t(4.7)\t17518\t76.1\nTotal recreational vehicles\t177240\t7.1\t103073\t4.9\t74167\t72.0\nOther net\t11490\t14.2\t11751\t16.0\t(261)\t(2.2)\nCorporate\t(42411)\t0\t(46190)\t0\t3779\t8.2\nTotal\t146319\t5.8\t68634\t3.2\t77685\t113.2\n", "q10k_tbl_44": "ORDER BACKLOG:\tAs of October 31 2020\tAs of October 31 2019\tChange Amount\t% Change\nRecreational vehicles\t\t\t\t\nNorth American Towables\t4397713\t1067023\t3330690\t312.1\nNorth American Motorized\t2215069\t669978\t1545091\t230.6\nTotal North America\t6612782\t1737001\t4875781\t280.7\nEuropean\t2308472\t1292063\t1016409\t78.7\nTotal\t8921254\t3029064\t5892190\t194.5\n", "q10k_tbl_45": "\tThree Months Ended October 31 2020\t% of Segment Net Sales\tThree Months Ended October 31 2019\t% of Segment Net Sales\tChange Amount\t% Change\nNET SALES:\t\t\t\t\t\t\nNorth American Towables\t\t\t\t\t\t\nTravel Trailers and Other\t837900\t60.2\t709665\t59.1\t128235\t18.1\nFifth Wheels\t554144\t39.8\t491223\t40.9\t62921\t12.8\nTotal North American Towables\t1392044\t100.0\t1200888\t100.0\t191156\t15.9\n\tThree Months Ended October 31 2020\t% of Segment Shipments\tThree Months Ended October 31 2019\t% of Segment Shipments\tChange Amount\t% Change\n# OF UNITS:\t\t\t\t\t\t\nNorth American Towables\t\t\t\t\t\t\nTravel Trailers and Other\t39077\t77.6\t32520\t75.9\t6557\t20.2\nFifth Wheels\t11264\t22.4\t10345\t24.1\t919\t8.9\nTotal North American Towables\t50341\t100.0\t42865\t100.0\t7476\t17.4\nIMPACT OF CHANGE IN PRODUCT MIX AND PRICE ON NET SALES:\t\t\t\t\t\t% Change\nNorth American Towables\t\t\t\t\t\t\nTravel Trailers and Other\t\t\t\t\t\t(2.1)\nFifth Wheels\t\t\t\t\t\t3.9\nTotal North American Towables\t\t\t\t\t\t(1.5)\n", "q10k_tbl_46": "\tThree Months Ended October 31 2020\t% of Segment Net Sales\tThree Months Ended October 31 2019\t% of Segment Net Sales\tChange Amount\t% Change\nNET SALES:\t\t\t\t\t\t\nNorth American Motorized\t\t\t\t\t\t\nClass A\t158555\t32.1\t161732\t38.9\t(3177)\t(2.0)\nClass C\t275399\t55.8\t229837\t55.3\t45562\t19.8\nClass B\t59901\t12.1\t24320\t5.8\t35581\t146.3\nTotal North American Motorized\t493855\t100.0\t415889\t100.0\t77966\t18.7\n\tThree Months Ended October 31 2020\t% of Segment Shipments\tThree Months Ended October 31 2019\t% of Segment Shipments\tChange Amount\t% Change\n# OF UNITS:\t\t\t\t\t\t\nNorth American Motorized\t\t\t\t\t\t\nClass A\t1168\t22.6\t1250\t27.8\t(82)\t(6.6)\nClass C\t3464\t67.0\t3041\t67.7\t423\t13.9\nClass B\t535\t10.4\t199\t4.5\t336\t168.8\nTotal North American Motorized\t5167\t100.0\t4490\t100.0\t677\t15.1\nIMPACT OF CHANGE IN PRODUCT MIX AND PRICE ON NET SALES:\t\t\t\t\t\t% Change\nNorth American Motorized\t\t\t\t\t\t\nClass A\t\t\t\t\t\t4.6\nClass C\t\t\t\t\t\t5.9\nClass B\t\t\t\t\t\t(22.5)\nTotal North American Motorized\t\t\t\t\t\t3.6\n", "q10k_tbl_47": "\tThree Months Ended October 31 2020\t% of Segment Net Sales\tThree Months Ended October 31 2019\t% of Segment Net Sales\tChange Amount\t% Change\nNET SALES:\t\t\t\t\t\t\nEuropean\t\t\t\t\t\t\nMotorcaravan\t318343\t52.8\t281733\t57.1\t36610\t13.0\nCampervan\t143400\t23.8\t77597\t15.7\t65803\t84.8\nCaravan\t55195\t9.2\t61032\t12.4\t(5837)\t(9.6)\nOther\t85550\t14.2\t72645\t14.8\t12905\t17.8\nTotal European\t602488\t100.0\t493007\t100.0\t109481\t22.2\n\tThree Months Ended October 31 2020\t% of Segment Shipments\tThree Months Ended October 31 2019\t% of Segment Shipments\tChange Amount\t% Change\n# OF UNITS:\t\t\t\t\t\t\nEuropean\t\t\t\t\t\t\nMotorcaravan\t5383\t44.0\t5510\t48.8\t(127)\t(2.3)\nCampervan\t4277\t35.0\t2631\t23.3\t1646\t62.6\nCaravan\t2566\t21.0\t3146\t27.9\t(580)\t(18.4)\nTotal European\t12226\t100.0\t11287\t100.0\t939\t8.3\nIMPACT OF CHANGE IN PRODUCT MIX FOREIGN CURRENCY CHANGES AND PRICE ON NET SALES:\t\t\t\t\t\t% Change\nEuropean\t\t\t\t\t\t\nMotorcaravan\t\t\t\t\t\t15.3\nCampervan\t\t\t\t\t\t22.2\nCaravan\t\t\t\t\t\t8.8\nTotal European\t\t\t\t\t\t13.9\n", "q10k_tbl_48": "Exhibit\tDescription\n31.1\tChief Executive Officer's Rule 13a-14(a) Certification\n31.2\tChief Financial Officer's Rule 13a-14(a) Certification\n32.1\tChief Executive Officer's Section 1350 Certification\n32.2\tChief Financial Officer's Section 1350 Certification\n101.INS\tXBRL Instance Document - the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document\n101.SCH\tInline XBRL Taxonomy Extension Schema Document\n101.CAL\tInline XBRL Taxonomy Calculation Linkbase Document\n101.PRE\tInline XBRL Taxonomy Presentation Linkbase Document\n101.LAB\tInline XBRL Taxonomy Label Linkbase Document\n101.DEF\tInline XBRL Taxonomy Extension Definition Linkbase Document\n104\tCover Page Interactive Data File (formatted in inline XBRL and contained in Exhibit 101)\n"}{"bs": "q10k_tbl_1", "is": "q10k_tbl_2", "cf": "q10k_tbl_3"}None
☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended October 31, 2020.
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from ____ to ____.
COMMISSION FILE NUMBER 001-09235
THOR INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware
93-0768752
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)
601 E. Beardsley Ave., Elkhart, IN
46514-3305
(Address of principal executive offices)
(Zip Code)
(574)970-7460
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act
Name of each exchange
Title of each class
Trading Symbol(s)
on which registered
Common stock (Par value $.10 Per Share)
THO
New York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes☑No☐
Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes☑No☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☑ Accelerated filer ☐
Non-accelerated filer ☐Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes☐No☑
As of November 30, 2020, 55,366,241 shares of the registrant’s common stock, par value $0.10 per share, were outstanding.
PART I – FINANCIAL INFORMATION (Unless otherwise indicated, amounts in thousands except share and per share data.)
Common stock – par value of $.10 per share; authorized 250,000,000 shares; issued 65,651,570 and 65,396,531 shares, respectively
6,565
6,540
Additional paid-in capital
442,794
436,828
Retained earnings
2,292,387
2,201,330
Accumulated other comprehensive income, net of tax
11,219
26,993
Less treasury shares of 10,285,329 and 10,197,775, respectively, at cost
(360,226)
(351,909)
Stockholders' equity attributable to THOR Industries, Inc.
2,392,739
2,319,782
Non-controlling interests
27,782
25,787
Total stockholders’ equity
2,420,521
2,345,569
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
5,860,922
$
5,771,460
See Notes to the Condensed Consolidated Financial Statements.
2
THOR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)
Three Months Ended October 31,
2020
2019
Net sales
$
2,537,360
$
2,158,785
Cost of products sold
2,158,508
1,849,974
Gross profit
378,852
308,811
Selling, general and administrative expenses
181,763
188,464
Amortization of intangible assets
27,427
24,293
Interest income
318
975
Interest expense
24,276
28,025
Other income (expense), net
615
(370)
Income before income taxes
146,319
68,634
Income tax provision
30,680
16,789
Net income
115,639
51,845
Less: Net income attributable to non-controlling interests
1,882
780
Net income attributable to THOR Industries, Inc.
$
113,757
$
51,065
Weighted-average common shares outstanding:
Basic
55,238,164
55,095,074
Diluted
55,554,682
55,224,655
Earnings per common share:
Basic
$
2.06
$
0.93
Diluted
$
2.05
$
0.92
Comprehensive income:
Net income
$
115,639
$
51,845
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment
(18,993)
993
Unrealized gain (loss) on derivatives, net of tax
3,332
(3,722)
Total other comprehensive loss, net of tax
(15,661)
(2,729)
Total Comprehensive income
99,978
49,116
Less: Comprehensive income attributable to non-controlling interests
1,995
638
Comprehensive income attributable to THOR Industries, Inc.
$
97,983
$
48,478
See Notes to the Condensed Consolidated Financial Statements.
3
THOR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Ended October 31,
2020
2019
Cash flows from operating activities:
Net income
$
115,639
$
51,845
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation
26,812
25,914
Amortization of intangible assets
27,427
24,293
Amortization of debt issuance costs
2,723
2,685
Deferred income tax provision
4,601
2,318
(Gain) loss on disposition of property, plant and equipment
(79)
619
Stock-based compensation expense
5,768
5,013
Changes in assets and liabilities:
Accounts receivable
(36,495)
(65,307)
Inventories, net
(322,047)
(82,152)
Prepaid income taxes, expenses and other
(14,857)
6,649
Accounts payable
127,585
19,639
Accrued liabilities
(20,601)
(46,593)
Long-term liabilities and other
2,234
3,080
Net cash used in operating activities
(81,290)
(51,997)
Cash flows from investing activities:
Purchases of property, plant and equipment
(24,708)
(31,220)
Proceeds from dispositions of property, plant and equipment
975
18,951
Business acquisitions, net of cash acquired
(22,700)
—
Other
—
(1,534)
Net cash used in investing activities
(46,433)
(13,803)
Cash flows from financing activities:
Borrowings on revolving asset-based credit facilities
—
41,569
Payments on term-loan credit facilities
(59,700)
(140,181)
Payments on revolving asset-based credit facilities
—
(5,577)
Payments on other debt
(3,096)
(3,001)
Payments on finance lease obligations
(119)
(107)
Short-term financial obligations and other, net
(5,580)
(7,477)
Net cash used in financing activities
(68,495)
(114,774)
Effect of exchange rate changes on cash and cash equivalents and restricted cash
(4,935)
(206)
Net decrease in cash and cash equivalents and restricted cash
(201,153)
(180,780)
Cash and cash equivalents and restricted cash, beginning of period
541,363
451,262
Cash and cash equivalents and restricted cash, end of period
340,210
270,482
Less: restricted cash
2,808
38,704
Cash and cash equivalents, end of period
$
337,402
$
231,778
Supplemental cash flow information:
Income taxes paid
$
48,788
$
24,512
Interest paid
$
18,207
$
25,592
Non-cash investing and financing transactions:
Capital expenditures in accounts payable
$
1,602
$
3,137
Quarterly dividends payable
$
22,700
$
22,080
See Notes to the Condensed Consolidated Financial Statements.
4
THOR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED OCTOBER 31, 2020 AND 2019 (UNAUDITED)
Three Months Ended October 31, 2020
Accumulated
Stockholders'
Additional
Other
Equity
Non-
Total
Common Stock
Paid-In
Retained
Comprehensive
Treasury Stock
Attributable
controlling
Stockholders'
Shares
Amount
Capital
Earnings
Income (Loss)
Shares
Amount
to THOR
Interests
Equity
Balance at August 1, 2020
65,396,531
$
6,540
$
436,828
$
2,201,330
$
26,993
10,197,775
$
(351,909)
$
2,319,782
$
25,787
$
2,345,569
Net income
—
—
—
113,757
—
—
—
113,757
1,882
115,639
Restricted stock unit activity
255,039
25
198
—
—
87,554
(8,317)
(8,094)
—
(8,094)
Dividends $0.41 per common share
—
—
—
(22,700)
—
—
—
(22,700)
—
(22,700)
Stock-based compensation expense
—
—
5,768
—
—
—
—
5,768
—
5,768
Other comprehensive income (loss)
—
—
—
—
(15,774)
—
—
(15,774)
113
(15,661)
Balance at October 31, 2020
65,651,570
$
6,565
$
442,794
$
2,292,387
$
11,219
10,285,329
$
(360,226)
$
2,392,739
$
27,782
$
2,420,521
Three Months Ended October 31, 2019
Accumulated
Stockholders'
Additional
Other
Equity
Non-
Total
Common Stock
Paid-In
Retained
Comprehensive
Treasury Stock
Attributable
controlling
Stockholders'
Shares
Amount
Capital
Earnings
(Loss)
Shares
Amount
to THOR
Interests
Equity
Balance at August 1, 2019
65,189,907
$
6,519
$
416,382
$
2,066,674
$
(57,004)
10,126,434
$
(348,146)
$
2,084,425
$
10,803
$
2,095,228
Net income
—
—
—
51,065
—
—
—
51,065
780
51,845
Restricted stock unit activity
206,624
21
1,436
—
—
71,341
(3,763)
(2,306)
—
(2,306)
Dividends $0.40 per common share
—
—
—
(22,080)
—
—
—
(22,080)
—
(22,080)
Stock-based compensation expense
—
—
5,013
—
—
—
—
5,013
—
5,013
Other comprehensive loss
—
—
—
—
(2,587)
—
—
(2,587)
(142)
(2,729)
Balance at October 31, 2019
65,396,531
$
6,540
$
422,831
$
2,095,659
$
(59,591)
10,197,775
$
(351,909)
$
2,113,530
$
11,441
$
2,124,971
See Notes to the Condensed Consolidated Financial Statements.
5
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(All U.S. Dollar, Euro and British Pound Sterling amounts presented in thousands except share and per share data or except as otherwise specified)
1. Nature of Operations and Accounting Policies
Nature of Operations
THOR Industries, Inc. was founded in 1980 and is the sole owner of operating subsidiaries (collectively, the “Company” or "THOR"), that, combined, represent the world's largest manufacturer of recreational vehicles (“RVs”). The Company manufactures a wide variety of RVs in the United States and Europe and sells those vehicles, as well as related parts and accessories, primarily to independent, non-franchise dealers throughout the United States, Canada and Europe. Unless the context requires or indicates otherwise, all references to “THOR,” the “Company,” “we,” “our” and “us” refer to THOR Industries, Inc. and its subsidiaries.
The July 31, 2020 amounts are derived from the annual audited financial statements of THOR. The interim financial statements are unaudited. In the opinion of management, all adjustments (which consist of normal, recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented have been made. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2020. Due to seasonality within the recreational vehicle industry, and the current COVID-19 pandemic, among other factors, annualizing the results of operations for the three months ended October 31, 2020 would not necessarily be indicative of the results expected for the full fiscal year.
Recently Adopted Accounting Standards
In January 2017, the FASB issued ASU No. 2017-04, "Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge (referred to as Step 2 in the goodwill impairment test). Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment charge equal to that excess shall be recognized, not to exceed the amount of goodwill allocated to the reporting unit. This ASU is effective for annual and any interim impairment tests for periods beginning after December 15, 2019. The Company adopted ASU 2017-04, effective August 1, 2020. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements.
2. Acquisitions
Togo Group
In February 2018, the Company formed a 50/50 joint venture, originally called TH2connect, LLC, with Tourism Holdings Limited ("thl"). In July 2019, this joint venture was rebranded as "Togo Group." Togo Group was formed to own, improve and sell innovative and comprehensive digital applications through a platform designed for the global RV industry.
Effective March 23, 2020, the Company and thl reached an agreement (the “2020 Agreement”) whereby the Company obtained additional ownership interest in Togo Group. THOR obtained a 73.5% controlling interest in Togo Group and the power to direct the activities of Togo Group. Since the effective date of the 2020 Agreement, the operating results, balance sheet accounts and cash flow activity of Togo Group have been consolidated within the Company's Condensed Consolidated Financial Statements.
The operations of Togo Group are focused on digital solutions primarily for the North American market related to travel and RV use, with expansion into other regions anticipated in future periods. The Togo Group is managed as a stand-alone operating entity and represents a non-reportable segment and a separate reporting unit for goodwill assessment purposes.
6
The table below summarizes the final estimated fair value of the Togo Group assets acquired and liabilities assumed as of the 2020 Agreement effective date.
Cash
$
326
Accounts receivable
466
Other assets
749
Property, plant and equipment
362
Amortizable intangible assets
Trade names and trademarks
1,130
Developed technology
5,700
Other
1,350
Goodwill
61,955
Liabilities
(2,595)
Non-controlling interest
(16,835)
Total fair value of net assets acquired
$
52,608
Amortizable intangible assets have a weighted-average useful life of approximately eight years and are amortized on a straight-line basis. The developed technology was valued using the Multi-Period Excess Earnings method, which is a form of the income approach. Trade names and trademarks were valued using the Relief from Royalty method. The majority of the goodwill is expected to be deductible for tax purposes.
Prior to the March 23, 2020 effective date of the 2020 Agreement, the Company accounted for the investment in Togo Group under the equity method of accounting, and the Company's share of the losses of this investment were included in Other income (expense), net in the Condensed Consolidated Statements of Income and Comprehensive Income. The Company's share of the loss from this investment recognized in the three months ended October 31, 2019 was $2,095.
3. Business Segments
The Company has three reportable segments, all related to recreational vehicles: (1) North American Towables, (2) North American Motorized and (3) European. The operations of the Company's Postle and Togo Group subsidiaries are included in Other, which is a non-reportable segment.
The following tables reflect certain financial information by reportable segment:
Three Months Ended October 31,
NET SALES:
2020
2019
Recreational vehicles
North American Towables
$
1,392,044
$
1,200,888
North American Motorized
493,855
415,889
Total North America
1,885,899
1,616,777
European
602,488
493,007
Total recreational vehicles
2,488,387
2,109,784
Other
80,707
73,566
Intercompany eliminations
(31,734)
(24,565)
Total
$
2,537,360
$
2,158,785
7
Three Months Ended October 31,
INCOME (LOSS) BEFORE INCOME TAXES:
2020
2019
Recreational vehicles
North American Towables
$
141,179
$
104,322
North American Motorized
41,567
21,775
Total North America
182,746
126,097
European
(5,506)
(23,024)
Total recreational vehicles
177,240
103,073
Other, net
11,490
11,751
Corporate
(42,411)
(46,190)
Total
$
146,319
$
68,634
TOTAL ASSETS:
October 31, 2020
July 31, 2020
Recreational vehicles
North American Towables
$
1,698,128
$
1,529,913
North American Motorized
644,142
480,225
Total North America
2,342,270
2,010,138
European
2,972,710
3,102,071
Total recreational vehicles
5,314,980
5,112,209
Other, net
236,081
212,378
Corporate
309,861
446,873
Total
$
5,860,922
$
5,771,460
Three Months Ended October 31,
DEPRECIATION AND INTANGIBLE AMORTIZATION EXPENSE:
2020
2019
Recreational vehicles
North American Towables
$
15,807
$
16,271
North American Motorized
3,770
3,494
Total North America
19,577
19,765
European
31,323
27,483
Total recreational vehicles
50,900
47,248
Other
2,911
2,511
Corporate
428
448
Total
$
54,239
$
50,207
CAPITAL ACQUISITIONS:
Recreational vehicles
North American Towables
$
9,408
$
11,275
North American Motorized
1,745
2,568
Total North America
11,153
13,843
European
9,894
15,027
Total recreational vehicles
21,047
28,870
Other
1,444
655
Corporate
361
498
Total
$
22,852
$
30,023
8
4. Earnings Per Common Share
The following table reflects the weighted-average common shares used to compute basic and diluted earnings per common share as included on the Condensed Consolidated Statements of Income and Comprehensive Income:
Three Months Ended October 31,
2020
2019
Weighted-average common shares outstanding for basic earnings per share
55,238,164
55,095,074
Unvested restricted stock units
316,518
129,581
Weighted-average common shares outstanding assuming dilution
55,554,682
55,224,655
For the three months ended October 31, 2020 and 2019, the Company had 96,809 and 266,699 unvested restricted stock units outstanding, respectively, which were excluded from this calculation as their effect would be antidilutive.
5. Derivatives and Hedging
The fair value of our derivative instruments and the associated notional amounts, presented on a pre-tax basis, were as follows:
October 31, 2020
July 31, 2020
Fair Value in
Fair Value in
Other Current
Other Current
Cash Flow Hedges
Notional
Liabilities
Notional
Liabilities
Interest rate swap agreements
$
631,800
$
20,469
$
673,400
$
24,840
Net Investment Hedges
The foreign currency transaction gains on the Euro-denominated portion of the term loan, which is designated and effective as a hedge of the Company’s net investment in its Euro-denominated functional currency subsidiaries, are included as a component of the foreign currency translation adjustment. Gains for the three months ended October 31, 2020, net of tax, were $5,482, and losses for the three months ended October 31, 2019, net of tax, were $1,254.
There were no amounts reclassified out of accumulated other comprehensive income ("AOCI") pertaining to the net investment hedge during the three-month periods ended October 31, 2020 and October 31, 2019, respectively.
Derivatives Not Designated as Hedging Instruments
The Company has certain other derivative instruments which have not been designated as hedges. These other derivative instruments had a notional amount totaling approximately $33,806 and a fair value of $1,854 which is included in Other current liabilities in the Condensed Consolidated Balance Sheet as of October 31, 2020. These other derivative instruments had a notional amount totaling approximately $34,862 and a fair value of $1,824, as of July 31, 2020. For these derivative instruments, changes in fair value are recognized in earnings.
The total amounts presented in the Condensed Consolidated Statements of Income and Comprehensive Income due to changes in the fair value of the following derivative instruments are as follows:
Three Months Ended October 31,
2020
2019
Gain (Loss) on Derivatives Designated as Cash Flow Hedges
Gain (Loss) recognized in Other Comprehensive Income, net of tax
Foreign currency forward contracts
$
—
$
(525)
Interest rate swap agreements
3,332
(3,197)
Total gain (loss)
$
3,332
$
(3,722)
9
Three Months Ended October 31,
2020
2019
Interest
Interest
Sales
Expense
Sales
Expense
(Loss) Reclassified from AOCI, Net of Tax
Foreign currency forward contracts
$
—
$
—
$
—
$
—
Interest rate swap agreements
—
(2,774)
—
(495)
(Loss) on Derivatives Not Designated as Hedging Instruments
Amount of loss recognized in income, net of tax
Interest rate swap agreements
—
(38)
—
(75)
Total (loss)
$
—
$
(2,812)
$
—
$
(570)
6. Inventories
Major classifications of inventories are as follows:
October 31, 2020
July 31, 2020
Finished goods – RV
$
108,327
$
152,297
Finished goods – other
46,819
44,779
Work in process
209,155
128,181
Raw materials
387,516
302,813
Chassis
334,392
135,194
Subtotal
1,086,209
763,264
Excess of FIFO costs over LIFO costs
(47,959)
(46,959)
Total inventories, net
$
1,038,250
$
716,305
Of the $1,086,209 and $763,264 of inventories at October 31, 2020 and July 31, 2020, $394,184 and $251,099, respectively, were valued on the last-in, first-out (LIFO) method, and $692,025 and $512,165, respectively, were valued on the first-in, first-out (FIFO) method.
7. Property, Plant and Equipment
Property, plant and equipment consists of the following:
October 31, 2020
July 31, 2020
Land
$
135,604
$
136,200
Buildings and improvements
767,246
760,986
Machinery and equipment
448,204
438,985
Rental vehicles
75,546
83,534
Lease right-of-use assets – operating
34,078
33,609
Lease right-of-use assets – finance
3,536
3,672
Total cost
1,464,214
1,456,986
Less accumulated depreciation
(372,273)
(349,337)
Property, plant and equipment, net
$
1,091,941
$
1,107,649
See Note 15 to the Condensed Consolidated Financial Statements for further information regarding the lease right-of-use assets.
10
8. Intangible Assets and Goodwill
The components of amortizable intangible assets are as follows:
October 31, 2020
July 31, 2020
Accumulated
Accumulated
Cost
Amortization
Cost
Amortization
Dealer networks/customer relationships
$
763,378
$
270,510
$
766,198
$
252,320
Trademarks
276,985
51,066
275,775
47,743
Design technology and other intangibles
212,218
45,551
213,468
40,654
Total amortizable intangible assets
$
1,252,581
$
367,127
$
1,255,441
$
340,717
Estimated future amortization expense is as follows:
For the remainder of the fiscal year ending July 31, 2021
$
81,636
For the fiscal year ending July 31, 2022
112,771
For the fiscal year ending July 31, 2023
92,322
For the fiscal year ending July 31, 2024
83,315
For the fiscal year ending July 31, 2025
76,397
For the fiscal year ending July 31, 2026 and thereafter